Hurricane Energy plc announced that production had returned to pre-shutdown levels at its operations in the Lancaster field, West of Shetland.
CARGO
The company said that the production rate immediately following the annual shutdown was increased leading to the average oil rate for August being higher than in previous months.
The 24th cargo of Lancaster oil of approximately 505 Mbbls was lifted in late August 2021.
More than 10 Mbbls of Lancaster crude have now been produced and sold from the Lancaster field.
The next cargo is expected to be lifted in early- to mid-October 2021.
“This increased production rate was accompanied initially by a greater rate of decline, such that the current oil production is now similar to the rate seen just prior to the shutdown,” added the company.
“As of 15 September 2021, Lancaster was producing 10,800 bopd from the P6 well alone with an associated water cut of c.33%.”
| August 2021 Lancaster field data | P6 | P7z(1) |
| Oil produced during the month (Mbbls) | 355 | – |
| Average oil rate (bopd) | 11,467 | – |
| Water produced during the month (Mbbls) | 144 | – |
| Average water cut(2) | 29% | – |
| Well gauge pressure (psia)(3) | 1,637 | – |
total fluid (oil and water) production. 3. Pressure reported is the monthly minimum from well downhole gauge (Hurricane Energy)
FINANCES
As of 31 August 2021, Hurricane had net free cash of $144 million compared with $122m for the previous month.
On 15 September 2021, Hurricane repurchased 34% of its outstanding $230m convertible bonds due in July 2022 for $62m, reducing the par value of convertible bonds to $152 million.
EXTERNAL AUDITOR
The company’s general meeting at the end of June 2021 rejected the re-appointment of Deloitte LLP as auditors.
Following tendering, the company appointed PKF Littlejohn LLP.
Hurricane expects to release its 2021 interim report and half-year results on 14 October 2021.